But it's still one of the most expensive places to buy food,
according to Wedbush Securities analysts.

They compared prices at Whole Foods stores in half a dozen
cities to those at various competing supermarkets to determine
which stores were cheaper.

They found that Whole Foods is about 15% more expensive than
other "conventional" supermarkets, such as Kroger, Wegmans, and
Safeway.

On a $300 shopping trip, that's a difference of about $45.

Analysts also compared Whole Foods' prices to those at
"specialty" grocers, including Trader Joe's and Sprouts Farmers
Market, and found that Whole Foods was about 19% more
expensive.

Whole Foods charges the biggest premium over its
competitors in the meat department, where prices are roughly 40%
more expensive than those at rival supermarkets.

This is an improvement over last year, however, when Whole
Foods charged about 50% more for meats than its competitors,
analysts said.

Trader
Joe's is one of the cheapest supermarkets.Getty Images/Michael Nagel

The price gap in produce isn't as wide, though. Whole Foods
charges about 22% more than competitors for fresh produce,
according to the survey.

Overall, Whole Foods is getting closer to its competitors
on price. The company's average price premium over conventional
grocers has dropped from 23% in the first quarter of the
year to 15% in the second quarter.

Analysts said that this improvement is a promising sign for
the business. They also seemed impressed by the low prices they
found at Whole Foods' new chain of stores, 365 by Whole Foods
Market.

Price investments by Whole Foods and the lower pricing
found at its new 365 store are encouraging, but we continue to
observe lower prices and increased availability of comparable
products at conventional grocers. We remain
firmly in wait-and-see mode to gauge if the retailer can reach
price relevancy with multi-channel consumers.